The earnings miss is significant against the backdrop of activist investor Gamco's recently disclosed stake. Watch for potential activist demands for operational improvements or strategic alternatives, especially given the company's strong cash position and active acquisition funnel. The Q1 results show continued revenue decline and margin compression despite transformation efforts.
Price Chart
Executive Summary
Strattec reported fiscal Q1 2027 results with net sales of $147.2M (down 3% YoY) and GAAP diluted EPS of $1.19, missing the consensus estimate of $1.47. Adjusted diluted EPS was $1.85, down from $2.22 a year ago. The company generated $10.8M in operating cash flow, repurchased $5.0M in shares, and ended the quarter with $111.8M cash and no debt, but the earnings miss against activist scrutiny context is the primary takeaway.
Key Financial Metrics
Key Facts
- Net sales of $147.2M, down 3% YoY from $152.4M, driven by $6.2M in lower customer production volumes partially offset by $1.0M in pricing
- GAAP diluted EPS of $1.19, down 42.5% from $2.07 in the prior-year period
- Adjusted diluted EPS of $1.85, down from $2.22 in the prior-year period
- GAAP net income attributable to Strattec of $4.8M, down from $8.5M a year ago
- Adjusted EBITDA of $13.5M (9.2% of sales), down from $15.6M (10.2% of sales)
- Gross margin contracted 80 bps YoY to 16.5%, with $1.4M unfavorable FX impact (90 bps headwind)
- Operating margin declined to 4.4% from 6.9% a year ago
- Cash from operations of $10.8M, down from $11.3M in the prior-year period
- Repurchased 67,904 shares for $5.0M during the quarter; $35.0M remaining under buyback authorization
- Cash and cash equivalents of $111.8M with no debt at quarter end
- Incurred $2.4M in business development expenses related to acquisition evaluation
- Activist investor Gamco Investors disclosed a stake via SC 13D/A filed August 31, 2026 (59 days before this filing)
Financial Impact
GAAP diluted EPS of $1.19 missed consensus of $1.47 by 19.0%; revenue of $147.2M was slightly above consensus of $146.6M by 0.4%
Risk Factors
- Continued revenue decline of 3% YoY driven by lower customer production volumes
- GAAP EPS miss of 19.0% versus consensus ($1.19 actual vs $1.47 estimate)
- Gross margin contraction of 80 bps YoY with $1.4M unfavorable FX impact
- Operating margin decline to 4.4% from 6.9% a year ago
- Activist investor Gamco holding a stake may push for changes if performance does not improve
- Business development expenses of $2.4M may continue, with uncertain acquisition outcomes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000933034-26-000009 |
| Document: strt-20261029.htm | 0000933034-26-000009 |
| Document: 0000933034-26-000009-index-headers.html | 0000933034-26-000009 |
| Document: 0000933034-26-000009-index.html | 0000933034-26-000009 |
| Document: 0000933034-26-000009.txt | 0000933034-26-000009 |
| 8-K Data (Synthetic) | 0000933034-26-000009 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $64.43 | awaiting T+60 | awaiting T+60 | $62.73 (+2.64%) |
Oct 27, 2026 4d ago | SC 13G/A | $63.98 | awaiting T+60 | awaiting T+60 | $62.73 (−1.95%) |
Sep 16, 2026 6w ago | DEF 14A | $68.50 | awaiting T+60 | awaiting T+60 | $62.73 (−8.42%) |
Jun 11, 2026 20w ago | Institutional Cluster | $78.79 $75.84 | ▼ −3.74% | ▼ −8.14% | $62.73 (−20.38%) |
May 12, 2026 24w ago | Insider Cluster | $62.76 $86.82 | ▲ +38.34% | ▲ +33.95% | $62.73 (−0.05%) |
May 7, 2026 25w ago | 8-K | $62.45 $88.48 | ▼ −41.68% | ▼ −36.84% | $62.73 (−0.45%) |
US Market Status
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